Tuesday 22 January 2019

Tullow chief cites 'strong progress' as it plans final investment decisions in Africa

Tullow CEO Paul McDade. Photo: George Brooks
Tullow CEO Paul McDade. Photo: George Brooks
John Mulligan

John Mulligan

Tullow Oil has continued to make "strong progress" in 2018, according to CEO Paul McDade.

Speaking at the group's annual general meeting, Mr McDade also said the Africa-focused explorer is "on track" to make final investment decisions in 2018 and 2019 for projects in Kenya, east Africa and Uganda.

Tullow's main interests are the TEN (Tweneboa, Enyenra, Ntomme) and Jubilee fields off Ghana. It also has exploration acreage off Ivory Coast and interests in other regions.

It confirmed yesterday that it expects "strong production" at TEN in Ghana and across its non-operated portfolio it delivered average first quarter net oil production of 87,700 barrels of oil per day. That includes production-equivalent insurance payments. Its full-year production guidance remains at between 82,000 and 90,000 barrels of oil per day.

"In east Africa, our Ugandan and Kenyan developments are on track for final investment decisions in 2018 and 2019 respectively and we are preparing for the start of our multi-year exploration programme across our diverse portfolio of exploration prospects in Africa and South America," said Mr McDade.

Tullow said that the Maersk Venturer drill rig began drilling operations in the TEN field in March 2018. The rig is expected to drill and complete four wells in 2018. The first well is a Ntomme production well at TEN.

The company said the drilling is progressing as planned. The second well is planned for the Jubilee site.

Tullow has also previously said that it hopes to produce the first oil from fields in Kenya between 2021 and 2022.

The company has emerged from a diabolical period during which it was hammered by low oil prices.

Revenue at the group last year rose 34pc to $1.72bn (€1.4bn), while its loss after tax was cut to $189m (€155.2m) from $597m a year earlier.

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